Paladin Resources Ltd Announces Private Share Placement

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Paladin Resources Ltd ("Paladin") (TSX:PDN)(ASX:PDN) announces the Company is proceeding with an equity issue of ordinary fully paid shares to raise between A$60M to A$70M.

This funding is required to facilitate the following:

- provide additional equity funding which, together with the debt funding announced 29 August 2005 will enable the Company to complete the construction and development of the Langer Heinrich Uranium Project in Namibia including working capital requirements;

The offering will be arranged by a syndicate of agents led by National Bank Financial Inc. and RBC Dominion Securities Inc. including Sprott Securities. As the Company is dual listed, shares will be placed through both ASX and TSX.

It is expected that the placement will be finalised within a month. Final terms are yet to be determined. The placement would proceed on a private basis with institutional investors in Australia, North America, London and Hong Kong.

Paladin Resources Ltd is an Australian uranium exploration and development company listed on the Australian Stock Exchange ("PDN") and the Toronto Stock Exchange ("PDN"). Paladin is involved in the mineral resource sector with projects both in Australia and Africa. With the Langer Heinrich Uranium Project in Namibia currently under construction, the Kayelekera Project in Malawi undergoing a Bankable Feasibility Study, Paladin is well placed to become a major supplier of primary uranium to world markets.